Survivor Justice Tax Prevention Act
Officially: “Survivor Justice Tax Prevention Act” Read the full text
What it does
Read it in plain language
1Short title
This section would let the Act be cited as the Survivor Justice Tax Prevention Act.
Show official text
1. Short title This Act may be cited as the Survivor Justice Tax Prevention Act .
2Exclusion from gross income of any damages, other than punitive damages, received on account of sexual acts or sexual contact
This section would amend section 104(a)(2) of the Internal Revenue Code, which currently excludes from a person's taxable income any damages, other than punitive damages, received on account of personal physical injuries or physical sickness. This section would add a second category to that exclusion, so it would also cover damages, other than punitive damages, received on account of any sexual act or sexual contact, using the definitions of sexual act and sexual contact in section 2246 of title 18 of the United States Code as those definitions read on the date this Act becomes law. This section would also add a rule for proving that damages fall into the new sexual-act-or-contact category: damages would count as being on account of a sexual act or sexual contact whenever the judgment or settlement agreement awarding them states that they are on that account, and damages could never be treated as inadequately proven to be on account of a sexual act or sexual contact just because there are no medical records of the act or contact. These changes would apply to amounts received under judgments made, and agreements entered into, after the date this Act becomes law. A judgment would count as made after that date if the first payment under the judgment is received after that date. An agreement would not count as entered into after that date if it replaces, supersedes, or revises an agreement that was entered into on or before that date, so a person could not avoid the cutoff by rewriting an older agreement to look like a new one. Finally, this section would require the Secretary of the Treasury, or the Secretary's delegate, in consultation with the Department of Justice's Office on Violence Against Women and other relevant federal agencies, to run a program that promotes public awareness of this new exclusion from gross income.
Show official text
2. Exclusion from gross income of any damages, other than punitive damages, received on account of sexual acts or sexual contact (a) In general Section 104(a)(2) of the Internal Revenue Code of 1986 is amended by striking on account of personal physical injuries or physical sickness and inserting on account of— (A) personal physical injuries or physical sickness, or (B) any sexual act (as defined in paragraph (2) of section 2246 of title 18, United States Code, as in effect on the date of the enactment of this subparagraph) or sexual contact (as defined in paragraph (3) of such section, as so in effect); . (b) Limitation on substantiation requirements Section 104 of such Code is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: (d) Limitation on substantiation requirements with respect to damages on account of sexual acts and sexual contact For purposes of subsection (a)(2)— (1) In general Damages shall be treated as on account of a sexual act or sexual contact referred to in subsection (a)(2)(B) if the judgment or agreement providing for such damages states that such damages are so on account. (2) Prohibition on medical records requirement In no event shall damages be treated as having not been adequately substantiated as being on account of a sexual act or sexual contact referred to in subsection (a)(2)(B) merely because there are no medical records of such act or contact. . (c) Effective date (1) In general The amendments made by this section shall apply to amounts received pursuant to judgments made, and agreements entered into, after the date of the enactment of this Act. (2) Special rule for judgments For purposes of paragraph (1), a judgment shall be treated as made after the date of the enactment of this Act if the first payment pursuant to such judgment is received after such date. (3) Special rule for agreements For purposes of paragraph (1), an agreement shall not be treated as entered into after the date of the enactment of this Act if such agreement replaces, supercedes, or revises an agreement entered into on or before such date. (d) Promotion of public awareness of exclusion The Secretary of the Treasury (or the Secretary’s delegate), in consultation with the Department of Justice Office on Violence Against Women and other relevant Federal agencies, shall conduct a program to promote public awareness of the exclusion from gross income provided by section 104(a)(2)(B) of the Internal Revenue Code of 1986, as amended by this section.
Where it is
In the House.